Toyota production is back on track in December after semiconductor cuts

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TOKYO – Production is back on track at Toyota, with all plants and production lines in Japan scheduled to operate normally in December for the first time in seven months.

Global production will hit 800,000 units in December, up from 760,000 units in the same period last year, when the company was racing to recover production from the slowdown in the pandemic.

Toyota said all 14 factories and 28 production lines in Japan are “running normally” for the first time since May.

The largest automaker in the country also kept its production forecast unchanged at 9 million units for the fiscal year ending March 31, 2022. The automaker expects to produce 500,000 vehicles overseas and 300,000 in Japan on next month.

Toyota is coming out a production cut in November which followed similar cuts in September and October, when the automaker felt the bite of the pandemic and the global shortage of microchips.

In announcing its December production plan on Friday, Toyota warned that there is a “continuing shortage of some parts” but that the company was working with suppliers to “deliver as many cars as possible to our customers the most. quickly as possible “.

Toyota said last month that it expected production to resume in December and that the company would do all it could to recoup the lost volume later in the fiscal year ending March 31, 2022.

Toyota had largely confused the industry by ramping up production and posting record profits despite the double blow of a pandemic and the shortage of microchips. But over the summer, Toyota finally succumbed to the global slowdown and joined rivals in retiring.

Despite a chip shortage, production cuts and stagnant sales, Toyota reported a 48% increase in operating profit in its fiscal July-September second quarter.

And citing aggressive cost control and attractive exchange rates, Toyota also raised its full-year profit forecasts to near record highs, even as it reduced its sales prospects.

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